Women, Wealth Effects, and Slow Recoveries

Business cycle recoveries have slowed in recent decades. This slowdown comes entirely from female employment, as women’s employment rates converged toward men’s during the past half-century. But does growth of translate into a for overall rates? We estimate extent to which women “crowd out” men labor market across US states, and find that it is small. Through lens general equilibrium model with home production, we show this statistic implies 60-75 percent business can be explained by convergence.(JEL D13, E24, E32, J16, J21)